Granite Ridge Resources (GRNT) Q4 2025 earnings summary

Executive summary

• Achieved 28% year-over-year production growth in 2025, reaching 32,000–35,120 BOE/d, with Q4 averaging 35,120 BOE/d, driven by a strategic shift to operated partnerships in the Permian Basin and across six U.S. basins.

• Transitioned from rapid scale-building to a focus on capital efficiency, cash flow durability, and sustainable free cash flow by 2027, targeting over 25% full-cycle returns at strip pricing.

• Maintained a quarterly dividend of $0.11 per share, with an 8.6% yield as of February 2026, emphasizing balanced shareholder returns.

• Added significant inventory through nimble, unit-by-unit acquisitions, securing 331 gross (77.2 net) locations in 2025 at entry costs ~65% below recent Permian averages.

• Operates across six premier U.S. basins with 65 high-quality operators and ~3,600 gross wells.

Financial highlights

• Q4 oil and gas sales totaled $105.5 million; full-year sales reached $450.3 million.

• Adjusted EBITDAX was $69.5 million for Q4 and $314.96–$315 million for the full year.

• Operating cash flow was $64.5 million in Q4 and $296.4 million for the year.

• Full-year CapEx was $401 million, split between $279 million for drilling/completion and $122 million for acquisitions.

• Liquidity at year-end was $339.5 million; net debt to Adjusted EBITDAX was 1.2x.

Outlook and guidance

• 2026 production guidance: 34,000–36,000 BOE/d (50–52% oil), targeting 9% production growth with moderated capital intensity.

• Development CapEx projected at $300–$330 million; total capital including acquisitions at $320–$360 million.

• Lease operating expenses projected at $6.75–$7.75/BOE; cash G&A $25–$27 million.

• Anticipates sustainable free cash flow from operations in 2027 at current strip prices.

• Production growth moderating, with capex aligned to expected cash flow.